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The real estate sector says the positive impacts of ‘ease of doing business’ have still not percolated to the industry.
Reacting to the World Bank’s ‘ease of doing business’ ranking in which India jumped 23 places to the 77th position, Joe Verghese, Managing Director at Colliers International India, said: “The positive impacts of ‘ease of doing business’ has unfortunately still not percolated to the real estate industry whether it’s safeguards on land titles or getting approvals for projects.”
“Companies entering India still struggle with these complexities and ambiguities. It’s time that State governments catch up with the Centre on using Key Performance Indicators (KPIs) as a key measure of success,” he added.
In India, real estate is critical and is the second-largest employment generator after agriculture. The industry has a larger multiplier effect on various ancillary sectors.
‘Much more to do’
Surendra Hiranandani, Chairman & Managing Director, House of Hiranandani, said: “The significant improvement in the rankings validates the ongoing efforts of the government to boost transparency in the real estate sector.” However, much more needs to be done to eliminate multiple departments giving approvals.
He further said: “It is important to sustain this momentum and implement single window clearance effectively across States. Also, technology will play a vital role in the future and help in simplifying the entire process. Digitization of land records and insuring property titles will improve confidence amongst investors. At present different agencies in India are accountable for data related to real estate, so integration remains the key. If changes are done in isolation it will not yield the desired results as all the relevant information will not be obtained through a single interface.”
“We acknowledge the on-going efforts of government to tackle the pressing administrative roadblocks in the Indian real estate sector, as reflected in the improvement in ranking by 129 ranks in ‘Dealing with Construction Permits’ in World Bank’s ‘Ease of Doing Business’ report,” Jaxay Shah, President, CREDAI National.
“However, we, at CREDAI, believe that there is still a long way to go in order to sustain this momentum; and the government should expedite implementation of the single window clearances to accelerate the revival of real estate.”
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